How does pulling money out affect cash flow?

[Eric Dumais]

So I've been stuck in analysis paralysis for a while now and I'm finally at the point of pulling the trigger, but I'm still hung up on one thing. I hear a lot of people say cash flow is dead, you can't BRRRR with today's rates, etc. I've been analyzing properties daily in locations I'm interested in investing to get practice and the properties I'm looking at cashflow on paper (yes, with maintenance, vacancies, capital expenses, and PM factored in). The properties I'm looking at wouldn't even necessarily require a BRRRR, but I know I'll do some upgrading and want to refinance eventually.

But I'm clearly missing something which of course is giving me pause because I've yet to buy my first property. Can someone please help me with round numbers and explain how pulling money out of a deal can affect cash flow at the end? I'd love to see numbers from the original mortgage through to the refinance stage. I just don't fully understand when I hear on podcasts "We couldn't pull all of our money out or we wouldn't cashflow."

Thanks in advance for any help. I'm really hoping to have an "Ah-ha!" moment.